Was there always an income exemption limit on DIRT for over 65 yr olds?

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priscilla

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Hi,

As the headline states, was there always an income exemption limit on DIRT for over 65 yr old or has that limit been introduced over the past number of years?

Thank you
 
Yes, I'm just wondering when the income exemption limit came into place. I advised someone about 12 yrs ago that they were exempt from DIRT as they were over 65 yrs, just realised to-day that there is an income limit in place and they are a bit over the income level exemption so they would be liable for DIRT on their current income. Was this limit always in place? Feeling really crap here if I gave someone incorrect advise.
 
Yes. As I mentioned the exemption limit is in place since DIRT was introduced.

If the income of the person concerned is only slightly over the exemption limit he or she may be entitled to marginal relief.
 
Thanks for your reply Sophrosyne, he earns about €23,000 per annum I think, would he need to inform the revenue about the back yrs or just leave it as is and if it arises, I pay the back payment?
 
Is €23,000 his gross income including gross deposit interest?

How much is the deposit interest?
 
€23, 000 gross but that's a very rough calculation based on rough pension amounts and not including savings. He is 84 yr old and has about €11,000 savings, most in the credit union.
 
Don't know what interest rate but can't imagine it's too high, any he has in the bank would also be in a regular saving account in AIB so lokewise I'm sure it's not huge interest either.
 
Priscilla, did he actually apply for the exemption to Revenue?

Are you sure that DIRT has not been deducted over these years?
 
In order to claim exemption from DIRT you must complete a declaration form stating that you (or your spouse or civil partner if you are married or in a civil partnership) meet the following conditions:

  • Either you or your spouse or civil partner are aged 65 or over when making the declaration, and
  • your (and your spouse or civil partner) total income for the year will be below the relevant annual exemption limit.
The current annual exemption limits are listed in Revenue's information leaflet: IT1 - Tax Credits, Reliefs & Rates

This leaflet can be ordered by phoning LoCall 1890 306 706 available 24 hours a day, 7 days a week or from any Revenue office.
 
As far as I can remember I rang the bank to say the account holder was over 65 and not eligible for DIRT and they didn't stop tax after that, that is also what the man remembers but it seems strange that he would not have signed a revenue document at the time, if he signed a document he would have surely noticed the exemption limit on the form, there is no way he would have defrauded knowingly.
 
priscilla said:
As far as I can remember I rang the bank to say the account holder was over 65 and not eligible for DIRT and they didn't stop tax after that, that is also what the man remembers but it seems strange that he would not have signed a revenue document at the time, if he signed a document he would have surely noticed the exemption limit on the form, there is no way he would have defrauded knowingly.
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Priscilla,

Before doing anything, get him to check his bank and credit union statements. It may be that DIRT has actually been deducted.
 
Yes, that's a good idea, will check it out, hopefully he has been otherwise I think I'll have a bit of explaining to do.
Thanks for your help.
 
Actually he has been paying DIRT on his credit union account, he received his yearly statement to-day and rang me to see if I could contact the credit union to inform them that he wasn't liable for the DIRT like I did with the bank yrs ago so it's only the bank DIRT now I need to check.
 
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